GREY:YSSCF - Post Discussion
Post by
AHRBull on Jun 14, 2019 7:39am
YSS acquisition news
time to load up the stock!
https://www.globenewswire.com/news-release/2019/06/13/1868610/0/en/YSS-Corp-Announces-Strategic-Licensing-Agreement-and-Acquisition-of-Call-Right-With-Sweet-Tree-Modern-Apothecary-Ltd.html
The Acquisition adds two operating and two AGLC-inspected stores and aligns with YSS’ short-term retail strategy to accelerate cash flow and profitability. With the Acquisition, and in light of the recent lifting of the AGLC retail cannabis licensing moratorium, YSS expects to have at least 12 operating stores by year-end 2019. Our pro forma cash position of approximately $12.9 million and expected near-term free cash flow allows YSS to refocus on organic growth opportunities in Western Canada and position for anticipated retail regulatory changes in Ontario. The addition of the Sweet Tree brand also aligns with YSS’ consumer strategy to build and offer customers recognizable and trusted brands. Acquisition Highlights
- Two operating locations in Calgary’s Riverbend and Forest Lawn neighborhoods that, based on year-to-date results, are on track to generate approximately $4.8 million in revenue and approximately $860,000 of store-level adjusted cash flow on an annualized combined basis.
- Prior to including any future AGLC licenses to either YSS or Sweet Tree, the Acquisition is anticipated to be 76% accretive on a revenue per fully diluted share basis and 43% on a store-level adjusted cash flow basis to YSS shareholders.
- One completed and AGLC-inspected location in Calgary’s Sunridge Mall area.
- One completed and AGLC-inspected location in High River near shopping, restaurants, hotels and Alberta’s busy Highway 2.
- Two unconstructed Calgary locations with development and building permits; one downtown on 17th Avenue S.W. along one of the city’s most heavily trafficked areas, which is also the planned flagship location for the Sweet Tree operating brand, and the second in a Douglas Glen neighborhood shopping centre.
- One unconstructed location in Okotoks, with development and building permits, in a busy regional shopping centre offering liquor, restaurants and services.
- The Sweet TreeTM trademarks and established brand presence in the Calgary area will become a second, regionally focused, retail operating brand within the YSS portfolio (see www.sweettreecannabis.com for more information on the Sweet Tree retail brand).
- Tony Balakas, the CEO of Sweet Tree, has joined the YSS team as Vice President, Operations.
YSS Pro Forma Highlights
- Three operating stores, including two in Calgary and one in Red Deer.
- Eight AGLC-inspected stores including two in Calgary, and one each in High River, Vermilion, Stoney Plain, Lloydminster, Vegreville and Spruce Grove, all of which are anticipated to receive retail cannabis licenses intermittently between late June to October of 2019, in accordance with AGLC’s recent announcement to grant five new retail cannabis licenses per week.
- One Edmonton store expected to be ready for AGLC inspection in the next two weeks.
- Five additional locations including two in each of Calgary and Grand Prairie, and one in Edmonton that will be constructed over the next three months.
- Nine additional secured locations across Alberta that will be prioritized for future construction capital, including the planned Sweet Tree flagship store on 17th Avenue S.W. in downtown Calgary.
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